Chapter 02 - Chapter2 OrganizationalEnvironments andCultures

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©2004 by Nelson, a division of Thomson Canada Limited 1 Chapter 2 Organizational Environments  and Cultures
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 ©2004 by Nelson, a division of Thomson Canada Limited 2 What Would You Do? The “Southwest” of Europe political pressures? What would you do?
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 ©2004 by Nelson, a division of Thomson Canada Limited 3 Learning Objectives: External Environments After reading the next four sections, you should be  able to: 1. discuss how changing environments affect  organizations 2. describe the four components of the general  environment 3. explain the five components of the specific  environment 4. describe the process of that companies use to make  sense of their changing environments
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 ©2004 by Nelson, a division of Thomson Canada Limited 4 Changing Environments Environmental  complexity and  munificence Environmental  change Uncertainty
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 ©2004 by Nelson, a division of Thomson Canada Limited 5 Environmental Change The rate at which a company’s  general and specific environments  change stable environments dynamic environments Punctuated equilibrium theory Companies cycle through stable and  dynamic environments
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 ©2004 by Nelson, a division of Thomson Canada Limited 6 Environmental Complexity  and Munificence Environmental complexity The number of external factors in the  environment that affect organizations Simple environments have few environmental factors Complex environments have many environmental factors
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 ©2004 by Nelson, a division of Thomson Canada Limited 7 Environmental Munificence The degree to which an organization’s  environment has an abundance or  scarcity of critical organizational  resources
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 ©2004 by Nelson, a division of Thomson Canada Limited 8 Environmental Change,  Complexity, and Munificence Exhibit 2.1
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Chapter 02 - Chapter2 OrganizationalEnvironments andCultures

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